IT asset disposition is an important part of businesses that utilize technology and software that need to be disposed of in a specific manner in order to keep up with regulations, data privacy, and environmental regulations. It is relevant in the current practices of technology, and it’s not just a way to stay in compliance; there is a potential for a return on investment with this. We’re going to talk more in this article about how utilizing ITAD can bring an ROI in both financial and environmental terms.
Why ITAD is a Strategic Investment for Your Business
IT asset disposition is the act of disposing of technology equipment and software in a manner that eliminates the possibility of data privacy leaks and breaches. This can include anything from asset collection, data destruction, and recycling of the equipment. Although ITAD is a necessary expense in business, there’s much more to it, and it can be used as an asset to your company that yields a return you wouldn’t otherwise think of. With this being said, it’s not just about ROI when looking at dollars or in a financial aspect, but it can also be an investment in your company’s sustainability.
The Financial ROI of ITAD
There is a financial gain when it comes to IT asset disposition, but this isn’t the main focus. With that being said, we are going to get into the details of how exactly this brings a financial return on investment for your business. One thing to consider is that you must understand the return you’ll get for these investments, especially if you need to invest in these services anyway, like you would with ITAD. Let’s dive into the details of how you get a return on your investment with ITAD.
Remarketing and Resale Value
Your retired assets, like laptops, desktops, and servers, often have resale market value still attached to them even after you’re done using them. ITAD service providers can help with refurbishing, data erasing, and reselling these items so that you can get some of your money back from them. This can be of benefit to offset some of the original cost you put into these devices, while also creating a bit of a revenue stream from selling these products.
Save on Storage for Products
Keeping unused products on shelves or in storage can take up space, but it can also cost you money, especially if you are paying for the storage to keep them in. There are hidden costs in warehouses, inventory management, and even security to keep all of these devices around, even when they’re not being used. Getting rid of these products by using an IT asset disposition service can help you free up space and save money on those hidden costs.
Avoiding Data Breaches and Associated Fines
If you dispose of these devices improperly, you could face potential data breaches and fines. Regulatory fines, data breach costs, and lawsuits can all be extremely costly in the event of improper IT asset disposition. In fact, according to IBM, data breaches can cost a business $4.88 million as of 2024, and the cost of that is expected to rise closer to $5 million in 2025. This is a huge, costly issue if IT assets are not disposed of properly.
Redeployment of Devices
Sometimes, devices are in good working condition and just may not have a use for them in your department. This doesn’t exactly mean that you need to recycle these devices, but instead, they can be redeployed throughout the company into other areas that might utilize them more. For example, instead of getting brand new laptops for interns, you could use old ones that work perfectly fine, that you may not have any use for otherwise.
The Environmental ROI of ITAD
IT asset disposition also offers a return on investment when it comes to environmental factors as well. Although financial ROI is typically the main thing that companies pay attention to, it’s important to recognize the ROI on environmental factors as well. Let’s look at the details on what environmental ROI is for ITAD.
Waste Diversion
E-waste is a huge problem for our world, and companies that utilize electronic devices are contributing to that waste. In these devices, there are toxic chemicals. Such as lead, mercury, or cadmium, which can leak into the soil and water, leading to contamination. Properly disposing of your devices allows e-waste to stay at a minimum while meeting environmental standards.
Material Recovery
These devices have material in them, such as copper, lithium, and aluminum, which could be useful as they are rare earth elements. These materials can be extracted and used in many other areas, which can help to reuse parts of the devices and also reduce the dependency on mining for finding these materials.
Lowering Your Carbon Footprint
Making and producing new devices can have a huge impact on the environment as they produce a lot of greenhouse gas emissions, and it’s an energy-intensive process. With this said, extending the life of these devices or being able to recycle them in some way can help to eliminate this and reduce your carbon footprint as a company.
Sustainability Reporting
Investors, customers, stakeholders, and regulators all expect transparency when it comes to the environmental impact of these companies. Having an ITAD service in place ultimately helps to measure these impacts so that there is a clear trail of evidence for the environmental impact of your business and what you’re doing to maintain or lower it. This keeps your business in good standing and makes it much easier when it comes to giving information over to those who are interested in knowing these metrics.
IT Asset Disposition ROI is Present in Environmental and Financial Perspectives
When it comes to measuring return on investment within your business, you might focus on the financial perspective. With this being said, when it comes to ITAD, there are both financial and environmental perspectives that really make up the return on investment. Working with a certified and skilled ITAD service can help you get back a financial return, as well as an environmental return, while also keeping you in compliance with regulations regarding this. If you’re a business that works with IT assets, it’s important to invest in an ITAD service as soon as possible to stay compliant and work on gaining your ROI.
